colca and jalaoca mining projects - proinversion.gob.pe · colca and jalaoca mining projects...
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Luis DucassiProject Director
COLCA AND JALAOCA MINING PROJECTS
ProInversion and the Promotion of Mining Projects
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GAP IN INFRASTRUCTURE 2016-2025
Source: Association for the National Infrastructure Promotion - AFIN (by its initials in Spanish)
Strategic pillar:
Gap by sectors 2025
Total of the gap: US$ 159,6 MM
Energy19%
Transport36%
Telecommunications17%
Others 28%
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Evolution of awarded projects
EVOLUTION OF AWARDS
Investment amount in million dollars (Without Vat)
Number of APP process
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14 projects - US$ 1,206 MM US$ 3,065 MM
24 PROJECTS - US$ 4,835 MM
*Amount to be defined.
CHALLENGES 2018
TRANSPORT
ENERGY
MINING
TELECOMMUNICATIONS
SANITATION
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Mining project Year of award Project Holder Estimated Investment(USD million)
Quellaveco 1992 Anglo American 5000
Cerro Verde 1993 Freeport-McMoRan 850 **
Antamina 1996 BHP Billiton, Glencore, Teck & Mitsubishi
2260
Alto Chicama 2002 Barrick Misquichilca 400
Las Bambas 2003 MMG Limited, CITIC Metal & Guoxin International Investment
6938*
La Granja 2005 Río Tinto 642*
Toromocho 2008 Chinalco 2344*
Magistral 2011 Nexa Resources 480
* Amount audited by Activos Mineros S.A.C. ** Does not include expansions.
Main Projects transferred to private investors between 1992 and 2011
PROINVERSION: MINING UNITS AWARDED
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Last State-owned Mining Unit awarded
Copper porphyry deposit with more than 1000 million MT at the following grades: 0.63% Cu and 0,014% Mo, and with a processing rate of 80 thousand TPD .
Competent Entity: Ministry of Energy and Mines
Modality: Project in Assets
Location: Department of Cajamarca
Transfer Price and Royalties: USD 400 million - 3% of the netsales of mineral
Awardee: Southern Peru Copper Corporation
Michiquillay Mining Project
Transition to a new form of promotion of mining projects
PROINVERSION: AWARDED MINING UNITS
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New mining promotion strategy
Michiquillay transfer marks the end of a mining asset type and the start of a newstrategy in the promotion of projects at an early stage
The Peruvian State will be at the forefront with new innovative mechanisms thatencourage the construction of the "pipeline of mining projects"
The development of projects will be assured in early stages with defined medium andlong term but at the same time flexible milestones
PROINVERSION: BUILDING THE FUTURE
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Main characteristics of the areas of non-admission of petitions - ANAP (By its initials in Spanish)
It is an area that MINEM reserves for the State
INGEMMET is entitled to carry
out mine prospecting in
the ANAP
Based on the potential, it is
defined if PROINVERSION* will
be in charge of its promotion
PROINVERSION, in agreement with the
Regional Government
Authority, can perform the private
investment promotion in an
ANAP
ANAP is transformed in
concession for its transfer to a
private investment
PROINVERSION: UNDERSTANDING ANAPS
* Before being included in the Multi-annual Report of Investments in MINEM APP
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Copper porphyry – gold deposit. It is a mining area which covers14 100 hectares. Two major mineralized zones surrounded by otherimportant mining properties with defined potential have beenidentified. The size and potential of the deposit shall be definedwith drilling works.
Competent Entity: Ministry of Energy and Mines
Modality: Project in Assets
Location: Department of Apurimac and Cusco
Estimated date of award: Third quarter of 2018
IN TRANSACTION
COLCA MINING PROJECT
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Cu-Au porphyry-skarn type deposit and Cu-Mo porphyry deposit. It isa mining area which covers 6400 hectares. Four importantmineralized zones have been identified . The size and potential of thedeposit shall be defined with drilling works.
Competent Entity: Ministry of Energy and Mines
Modality: Project in Assets
Location: Department of Apurimac
Estimated date of award: Third quarter of 2018
JALAOCA MINING PROJECT
IN TRANSACTION
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Peru: Great growth potential and solid macroeconomic environment
Metal's price recovery and favorable global situation
Availability of a large area to explore, located in a region in favor of the mining development and close to major mining projects
Stable and known mining policy and regulatory framework
Immediate access to infrastructure
OUTSTANDING ASPECTS OF BOTH PROJECTS
Andres QuirozPROJECT ADVISOR
Geological Aspects
COLCA AND JALAOCA MINING PROJECTS
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Summary of performed studies
COLCA MINING PROJECT
Concept Description
PROPERTY ANAP (Areas of Non-Admission of Petitions)
EXPANSION 14 100 ha
LOCATION Apurimac Region; Cotabambas province
3800 – 1800 m.a.s.l.
170 km from Cusco¸ 5 hours
Neighboring
projects
Cotabambas porphyries Cluster (Panoro)
TRAGETS Colca (6200 ha)
Huallpachaca (5600 ha)
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Summary of performed studies
COLCA MINING PROJECT
Concept Description
GEOLOGY Lithology Andesites of Tacaza Group (Paleogeno – Neogeno)
Diorites, tonalites and granodiorite of Andahuaylas – Yauri Batholith
(Eocene – Oligocene)
Alteration type Propylitic and argillic in igneous rocks, and skarn
Mineralization Epithermal veins, skarn.
Cu oxides and carbonates in outcrops
Structure NE-SW structural corridor, like Cotabambas porphyry
GEOCHEMISTRY Regional
Stream
sediment
2020 samples, included 27 samples around Colca Project.
Plus 33 samples into the project area, and 6 control samples
(duplicates, blanks, standards)
Rocks 445 samples
QA/QC: 48 samples control
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Summary of performed studies
COLCA MINING PROJECT
Concepto Descripción
Anomalies Au, Cu, Pb, Zn
GEOPHYSICS IP 79 km over 1000 ha
Magnetometry 242 km over 1450 ha
DESCRIPTION The Colca ANAP is located in the metallogenic strip of Porphyry and Skarns of Copper-Molybdenum-Gold of the Oligocene Eocene within the Andahuaylas - Yauri Batholith, and is adjacent to the east of the Cotabambas Project of Panoro Minerals Ltd. On surface, mineralization of copper oxides with limonites, calcite veiling, patchy argillic alterations, and an extensive propylitic alteration can be observed
Colca zone
(6200 ha)
418 rock samples have been analyzed, evidencing anomalous values ofup to 3,063 ppb Au and up to 7.49% Cu. It also registered an extendedanomaly of IP chargeability.
Huallpachacazone (600ha)
170 geochemistry samples were taken in this zone that showed valuesaround 815ppm and 4% of Cu. Huallpachaca is located near theporphyry corridor of Cotabambas, property of Panoro Minerals.
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JALAOCA MINING PROJECT
Summary of performed studies
Concept Description
PROPERTY ANAP (Areas of Non-Admission of Petitions)
EXPANSION 6400 ha
LOCATION Apurimac Region; Aymaraes and Antabamba province
4500 m.a.s.l.
30 km Chalhuanca¸ 8 hours from Cusco
Main neighboring
projects
Los Chancas
La Antilla
Utupara
Trapiche
Antabamba (Lahuani)
TRAGETS Pucasalla (1048 ha); Llamoja (1877 ha); Huarajo (100 ha); Mesaorco (369 ha)
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JALAOCA MINING PROJECT
Summary of performed studies
Concept Description
GEOLOGY Lithology sandstone, shales and limestone of Fm. Socosani (Jurasic)
Andahuaylas – Yauri Batholith (Eocene – Oligocene)
Quartz-monzonite and dacitic porphyries
Alteration type Skarn, potassic, silicification, phyllic, propylitic
Structure Mollebamba fault associated with Trapiche and Panchita porphyries.
GEOCHEMISTRY Stream sediment 49 samples
QA/QC: 13 samples control
Rocks 333 samples
QA/QC: 73 samples control
GEOPHYSICS IP 39.3 km
Magnetometry 152 km
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JALAOCA MINING PROJECT
Summary of performed studies
Concept Description
DESCRIPTION In the Jalaoca sector, the intrusives cut the Ferrobamba sedimentary sequence and producehydrothermal alteration and copper - molybdenum anomalies. It is close to MollebamabaFault, which is the dominant structural control for the Trapiche and Lahuani deposits.
Pucasalla zone
(1048 ha)
It presents consistent geochemical anomalies (62 samples) of gold, copper
and molybdenum and IP geophysical anomaly >28.5 mV/V and magnetic
anomaly >24,380, <24,565. Hydrotermal alteration and veinlets in skarn
and porphyry rocks
Llamoja zone
(1900 ha)
It presents a large number of mineralized veins. Copper anomalies, over162 samples, have values of between 50 to 2630 ppb with molybdenumanomaly of 362 to 842 ppm. There are the potassic alteration in intrusiverocks, chalcopyrite disseminated, and copper oxides on surface.
Carlos SalazarProject Advisor
Contractual Structure
COLCA AND JALAOCA MINING PROJECTS
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Signing of the
contract
Start of Production
EFBPEA43-101
Start
Exploration Feasibility Construction Production
End of the period without commitments
US$ 2M % CAPEX PEA% CAPEX
EFB
War
ran
tyC
om
mit
men
ts
US$ 2M5k
US$ 1M
Investment Commitment
US$ 8M25k
24 m 48 m Year 7 Year 11 Year 14
CONTRACTUAL STRUCTURE
+2 +4 +4
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Start
Resolution if CMI are not accredited within
the established deadline
Res
olu
tio
nE
xpan
sio
ns
48 m
To have access: Accredit USD
10M
To have access: Accredit USD
10M
Resolution if milestones are not completed within deadlines (more expansions)
+ 2 years + 4 years + 4 years
CONTRACTUAL STRUCTURE
Year 7 Year 11 Year 1424 m
Exploration Feasibility Construction Production
Signing of the
contract
Start of Production
EFBPEA43-101
End of the period without commitments
Investment Commitment
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Colca & Jalaoca
• Geographical location with a history of development ofmining projects
• Geological potential• Accompaniment of the Peruvian State• Structures of flexible schedules• Payment schemes based on project progress• They are two different projects. The register as a bidder,
submission of consultations, among others, is doneseparately.
IN SUMMARY
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ProInversión
Advisers
Luis Augusto Ducassi
Project Director+51 1 200 1200 extension 1203
Institutional e-mails
[email protected]@proinversion.gob.pe
CONTACT INFORMATION
